The global feed-grade amino acid market is expected to grow steadily in coming years. But this popular class of feed additives also is becoming more expensive to access.
A recent report by Verified Market Reports indicates that from 2021-2031, demand the ration enhancements is expected to approximately quadruple, from less than $10 million to more than $40 million annually.
A rise in consumption of and demand for protein-based food sources worldwide is fueling the growth. Additionally, livestock nutritionists and producers are recognizing the value of optimizing feed formulations with the enhancement of amino acids to enhance animal performance, minimize environmental impact, and support food safety.
But as demand for these feed additives is rising, so is the cost. Currently, it’s not the ingredients themselves, but the freight required to deliver them.
A large share of the feed-grade amino acids today is manufactured in China. According to feed industry source All About Feed, FOB China prices for common amino acids including lysine, threonine, tryptophan and valine have softened in the first half of 2024.
However, the container freight rate from China to the Americas and Europe has increased significantly in recent months, with further upward potential at least through the summer.
The result is a net price for most amino acids that is firm-to-climbing. Thus, analysts expect strong interest in locking in contracts for Q3 and even into Q4 for these amino acids.
Meanwhile, reports continue that production of methionine is still lagging, but that factor has not influenced current methionine prices as much as freight rates. Like the other amino acids, slightly weaker prices have been offset by higher shipping costs.
